Specialization units

How does the degree of specialization and departmentalization affect broad interdepartmental processes and systems? Is specialization good, bad, or situational?

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Fragmentation
How does the degree of specialization and departmentalization affect broad interdepartmental processes and systems? Is specialization good, bad, or situational?

Specialization or departmentalization may affect interdepartmental processes in many ways. To understand departmentalization or specialization, we must define it. Departmentalization is "subdividing work and workers into separate organizational units responsible for completing particular tasks." An example is that Microsoft Corporation has separate departments for sales, engineering, finance, marketing, research, and development. There are advantages and disadvantages to specialization in an organization. The organization has many operating structure. The most popular operating structure is functional organization, where the company is divided into separate units based on roles, such as marketing, research, accounting, and research and development. The functional structures has its advantages and disadvantages.

One advantages is efficiency and productivity. The ...

Solution Summary

Specialization units and departmentalization exits in every company. There are several types of specialization units. The major form of specialization units or departmentalization are functional, product, and customers. Each type of departmentalization has its advantages and disadvantages. There is no clear line in what a company should do to prevent or continue with departmentalization. Departmentalization has its benefits and problems.